2018年-FCA英国金融行为监管局_unbreakable_deposits_and_client_money_5页_357kb

Regulator Assessment Summary: PS18/2 - Client Money and Unbreakable Deposits

Core Content

This document outlines the FCA's assessment of the regulatory changes introduced in PS18/2: Client money and unbreakable deposits, which came into effect on 22 January 2018. The proposal aims to address the challenges faced by investment firms in depositing client money with banks, particularly due to the 30-Day Rule in the Client Assets Sourcebook (CASS), which restricted the use of unbreakable deposits (UDs) longer than 30 days.

The FCA conducted a consultation process (CP17/29) and published its responses and final rules in PS18/2. The changes include allowing firms to deposit client money in UDs with terms between 31 and 95 days, provided they meet certain conditions. The assessment focuses on the impact on firms, including both costs and benefits, and provides a BIT score to quantify the net impact.

Affected Firms and Regulatory Scope

• Lead Regulator: FCA
• Date of Assessment: 4 May 2018
• Implementation Date: 22 January 2018
• Affected Businesses: FCA-regulated firms that conduct designated investment business in the UK
• Number of Firms:
  • 124 CASS small
  • 443 CASS medium
  • 29 CASS large

Key Changes Introduced

1. Extended Unbreakable Deposit Term:

   • Firms can now deposit client money in UDs with terms between 31 and 95 days.
   • This change is intended to improve the ease of placing client money with banks and to enhance interest earnings.

2. Conditions for Extended UDs:

   • Firms must implement appropriate risk management measures.
   • They must disclose to clients the use of UDs.
   • They must maintain a written policy document outlining the maximum proportion of client money to be placed in UDs and the associated risk management procedures.
   • They must report the use of 31-95 day UDs in the Client Money and Asset Report (CMAR).

Costs to Firms

The FCA estimated the following one-off and ongoing costs associated with the rule change:

Total Estimated One-off Cost: £352,000
Total Estimated Ongoing Cost: £226,560

The FCA does not expect the extension of the unbreakable deposit term to cause additional costs to firms, as it was anticipated to reduce the burden of negotiating banking arrangements.

Benefits to Firms

The primary benefits of the rule change are:

1. Ease of Placing Client Money:

   • Firms can more easily place client money in bank accounts with longer unbreakable terms, which may lead to reduced negotiation time and costs.

2. Interest Earnings:

   • Firms are expected to earn 25–35 basis points on client money placed in 31–95 day UDs.
   • Based on industry feedback, the FCA estimated that 10–50% of client money would be placed in these UDs.
   • Estimated Total Interest Earnings for Industry: £29,733,300–£208,133,100
   • BIT Score Benefit: £118,953,000 (midpoint of the range)

Consumer Impact

• The interest earned by firms on client money is considered a benefit to the industry.
• A 10% pass-through to consumers was estimated in the CBA, but this is treated as an indirect benefit under the Enterprise Act and is not included in the BIT score.

Additional Information

• The FCA used indicative data from actual usage after the rule change to validate the ex ante estimates.
• 17 CASS medium and large firms reported holding client money in 31–95 day UDs, with 42% of their total client money placed in such deposits.
• This suggests the benefits may be higher than initially estimated.

BIT Score

• Estimated Total Benefit: £118,953,000
• Estimated Total Cost: £110,700
• Net Benefit (BIT Score): £118,953,000 - £110,700 = £118,842,300

Reference

• Policy Statement: PS18/2 - Client money and unbreakable deposits